FTC Closes Made in USA Inquiries Into Semyx Waterjets and Daktronics LED Signs

Federal Trade Commission staff closed two more Made in USA investigations in late spring 2018, after Semyx and Daktronics agreed to stop unqualified USA-origin claims on products with significant imported content.

Semyx (May 30, 2018)

Staff raised concerns that marketing overstated how much of Semyx’s waterjet cutting machines, which contain significant imported components, were made in the USA. In its closing letter, the FTC said unqualified “Made in USA” or “Built in USA” claims likely suggest products are “all or virtually all” made in the USA, and that flags, maps or factory locations can also convey an origin claim. Semyx:

• Stopped using unqualified USA-origin claims.
• Updated its website, social media, tradeshow and print materials.
• Removed “Made in USA” stickers from products in inventory.
• Sent updated information to third-party distributors.

Daktronics (June 5, 2018)

The South Dakota company’s LED signs incorporate significant imported materials. Its closing letter said Daktronics withdrew and replaced the online ads staff flagged, reviewed its other marketing materials, trained marketing, sales and product staff on non-deceptive origin claims, and gave resellers replacement materials.

In both letters, staff said it is appropriate for the companies to promote USA workers and processes as long as marketing does not overstate how much of a product is made in the USA. Staff decided not to pursue either investigation further, noting that this is not a finding that no violation occurred.

FAQ

What did the FTC find?

Staff was concerned that marketing overstated USA content in products with significant imported parts. Both companies fixed their claims.

Were there penalties?

No. Staff closed the investigations without action, while reserving the right to act later.

Can these companies still mention USA work?

Yes, staff said they may promote USA workers and processes without overstating USA content.